The Insider Trading Sanctions Act Passed in 1984 Allows the SEC

question 22

True/False

The Insider Trading Sanctions Act passed in 1984 allows the SEC to impose a fine of up to three times the amount of illegal profits gained from insider trading.

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Definitions:

Fixed Costs

Expenses like rent, salaries, and insurance that stay the same no matter the production or sales volume.

Operating Cash Flow

Cash generated from a company's normal business operations, indicating whether a company can maintain and grow its operations.

Cash Break-even Point

The point at which a business generates enough revenue to cover its operating cash expenses, resulting in zero net cash flow.

Variable Cost

Variable cost is a cost that changes in proportion to the level of activity or production volume.